Jefferies Raises Price Target on Microchip Technology (MCHP) Following 4Q Beat
Jefferies reiterated a Buy rating on Microchip Technology (NASDAQ: MCHP), and raised the price target to $56.00 (from $53.00), following the company's 4Q earnings report. MCHP reported sales of $568m, 100bps above consensus' $563m. EPS of $0.70 was 2c above consensus. MCHP expects JunQ sales of $799.1-841.9m, $821m at the midpoint, 180bps below consensus on a combined basis. MCHP's combined EPS outlook of $0.70-0.79 was $0.04 below consensus at the midpoint.
Analyst Mark Lipacis commented, "MarQ sales/EPS $568m/$0.70 were above consensus $563m/$0.68. MCHP's core business performed well in the quarter and performed in-line with our expectations. JunQ sales outlook missed consensus by 180bps due to weaker than expected contribution from ATML. MCHP remains a top pick due to our forecast for its FCF/Share growth potential, accretive M&A and capital return. Reiterate Buy."
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Shares of Microchip Technology closed at $48.42 yesterday.